Quiz: are you Financially Ready to buy a new Home?
Maybe nothing in the next few years or so. As the housing market adjusts to lots of losses and high foreclosure rates, lenders have started raising expectations for home buyers. What kind of credit score do lenders look for from potential home buyers? Government and FHA loans might look for a 580 or better and banks could require 760 or better; there is a range of expectations. And getting approved with a low score is possible, but buyers will pay in high interest charges. It’s estimated that $5 trillion, of the $11 trillion in mortgages, in the United States come through the government’s Fannie Mae and Freddie Mac lending programs.
Credit counselors are available throughout the United States, and they offer options for working out mortgage and hardship issues. More than 23 percent of homes lost their value, which is a lot, but in some regions homes gained value and in others values remained the same. Still, that’s $1.7 trillion in losses. What percentage of homes in the United States lost value in 2010? Real estate agents can’t really help with financial matters after a sale, and loan flippers are predatory lenders, offering so-called refinancing that comes to nothing but more charges.
How are property taxes and homeowners insurance – next page – calculated each year? According to the U.S. Department of Agriculture, Americans spend about $222,360 to raise a child more than 18 years, which breaks down to a monthly average of around $1,029, but it can be as high as “bucket loads” and either way is noticeable. Which resource should you turn to if you get in over your head after buying a new home? Taxes depend on the value of the property when taxes are assessed, and insurance rates can go up or down depending on claims or home improvements. Having children can add how much in expenses each month?
Even if now’s the right time in your life to own a home doesn’t necessarily mean your finances are also up to the commitment. What is the recommended percentage of income you should spend on a monthly mortgage payment? While 15 to 25 percent might be in the ideal range, 20 to 35 percent is a general recommendation. Test your fiscal fitness in our “Are You Ready to Buy a New Home” quiz and save yourself the hassle of a financial crisis.
If a neighborhood or region has more homes for sale than buyers, home prices can drop as sellers compete to sell their homes. A lot. They provide loans outside of bank loans. If there were 10 homes and 30 buyers, it would be a seller’s market. It’s a form of supply and demand where a buyer has the advantage. What do Fannie and Freddie have to do with home buying?
